If you are someone who agrees to the fact that life is uncertain, you should definitely consider getting yourself a term insurance plan. It helps secure the financial security of your family and your loved ones, and also allows you to prepare yourself for emergencies. We understand the skepticism of some people when it comes to a term insurance policy since it does not pay the policyholder a lump sum amount at the end of the tenure, while the other policies do. But the term life insurance more than compensates for your lost income for your family in your absence. Here are a few lesser-known facts about term insurance that may encourage you to get one for yourself.
- Coverage up to 85 years of age
You needn’t buy a term insurance plan only when you are young. Yes, it is more beneficial if you opt to buy it in your 20s, but rest assured that you can also buy it as late as your 50s. It offers financial coverage up to 85 years of age. However, you need to know that the longer you wait to buy term insurance, the higher you will have to pay in form of premiums.
- Term insurance isn’t a gimmick
Most of the other insurance plans are investment-linked and don’t guarantee adequate financial support for the future. Term insurance, on the other hand, is the true life insurance and can prove to be a reliable source of income for your family in your absence. If you are looking for a product that gives financial security to your family, term insurance is your answer.
- Claims could be rejected if you falsify information
At the beginning of the process, you need to fill a form that asks for information like your age and health conditions. The amount you need to pay as premiums depends on the information you give. In a bid to lessen the amount of premium, people lie on their application. However, if caught lying, the insurance company has all the rights to reject your claim.
- Coverage is limited to 20x of your annual income
One of the most important tasks when it comes to buying term insurance is determining the right coverage. It is natural that we would want to leave behind as much as we can for our families, but insurance companies have certain rules. They can only approve a maximum coverage worth 20x your annual income. So, if your annual income is Rs. 10 lakh, you cannot buy a term insurance plan with cover beyond Rs. 2 crores.
We hope that reading this article has given you a new perspective towards term insurance plan.